Posts by Andrew Stotz

Free cash flow to the firm (FCFF) is the cash flow that a company is ‘free’ to distribute to all providers of money (both, debt and equity) without damaging its growth opportunities. Below I explain the process an analyst would go through to estimate free cash flow. Like all forecasts, your FCFF starts with your…

I appeared on Bloomberg Markets today discussing the upcoming election in Thailand, the current state of the Thai economy and his thoughts on the Thai equity market. You can see the full interview from Bloomberg below.

Since debt is cheaper than equity, in theory, this would mean that a company would prefer to be fully funded by debt to minimize its cost of capital. However, it’s not the case in reality that a company has a capital structure that is 100% debt. In this post, our main focus is on the…

Value investing is the idea that you can achieve superior investment performance through buying stocks at prices that appear to be below the “intrinsic value” of the business. The origin of the tools to perform this analysis comes from Benjamin Graham and David Dodd’s 1934 book, Security Analysis. The investor tries to estimate the intrinsic…

Valuation Master Class Live is the leading valuation training workshop for aspiring students and young professionals. Prior attendees say they gained four key things: First, they learned PRACTICAL skills for equity valuation, because we focus on real valuations, not theory. Second, they gained CONFIDENCE in their valuations, because they learned the mistakes to avoid. Third,…